Financing - Loan Types

The key features of popular loan types are listed below. They option that will best suit your needs financial needs depends on a variety of factors.

USDA

• 100% financing
• Sellers may pay all closing costs and prepaids
• Geographic and income restrictions apply (learn more)
• Stick built homes
• No barns or significant outbuildings
• Single-family residences only

VA

• 100% financing
• Available to eligible Veterans and active Service Members
• Sellers may pay all closing costs and prepaids
• Stick built & approved manufactured homes
• 1-4 unit owner occupied properties eligible

FHA

• 3.5% minimum down payment
• Gifted funds may be used for down payment
• Sellers may pay all closing costs and prepaids
• Non-occupant co-borrowers allowed
• Stick built & approved manufactured homes
• 1-4 unit owner occupied properties eligible

CONVENTIONAL

• 5% minimum down payment
• Down payment must be Borrower's own funds for minimum down
• Sellers may pay up to 3% of the sales price towards closing costs and prepaids
• Stick built & approved manufactured homes

1st TIME HOMEBUYER PROGRAMS

• 0% interest down payment loans available through WA State Housing Finance Commission, www.wshfc.org.
• 2nd mortgages for down payment assistance, closing costs and prepaids and/or property modifications to families with disabled household members

ADJUSTABLE RATE MORTGAGES (ARMs)

Adjustable Rate Mortgages are available on VA, FHA and Conventional loan products and run the gamut from a fixed term of 1, 3, 5, 7 and 10-year terms. At the end of the fixed term, the interest rate may be modified based on market indices typically from 1% to 2% with a 5% to 6% cap over the life of the loan. An ARM loan typically has a lower interest rate than what's offered on a fixed term loan making it attractive for a variety of reasons.